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Corrections Corporation of America Message Board

  • bidupbid bidupbid Apr 3, 2000 11:48 AM Flag

    Damn it.

    One question to all:

    How in the world did
    things get so bad so fast?
    I am at a loss as to how
    company went from
    paying .55 a qtr in dividends to
    nothing
    to $2 stock price.

    What in the hell
    happened? Is it poor occupancy? What?

    We know
    management sucks but what is the exact
    financial cause of
    this?

    Thanks for any replies.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • I don't believe occupancy changes have anything
      to do with PZN's problems. The problems were always
      there, but masked by the financials. The dividend rate
      was being supported by rents paid by CCA, who could
      not afford the rent. Where were they getting the
      money? From PZN in the form of construction and
      management fees. Where was PZN getting the money? They were
      borrowing it under the line of credit. Once the credit ran
      out the game was over. The problem was there from the
      beginning when the CCA-PZN reorganization was done - CCA
      did not have the financial capacity to survive. They
      tried to save CCA by boosting the fees paid by PZN, but
      the whole thing collapsed under the debt that PZN
      took on to grow. Whoever structured and supported the
      PZN IPO must have known that CCA was not a viable
      entity and deserves to be sued.

    • IMO the critical issue has been occupancy.

    • I think it is many factors; however, the most
      prominent being management's disdain for and the misleading
      of the investment community. It's the old fool me
      once, shame on you, fool me twice shame on me syndrome.
      Only consistent earnings and track record will pull
      this stock to past levels.

 
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